ONGC Videsh ltd, the overseas arm of Oil and Natural Gas Corp (ONGC), has received one-year extension to explore a Vietnamese oil block in the contested waters of the South China Sea. This is the fourth extension for OVl to explore Block-128, the license for which is now valid till June 15, 2017, sources privy to the development said.
OVl had in May applied to the Vietnamese authorities for a fourth extension of the exploration licence for the deepsea block to maintain India’s strategic interest in the South China Sea. Vietnam’s national oil company PetroVietnam has granted the extension, sources said.
OVl had signed Production Sharing Contract (PSC) for the 7,058 square km Block 128 in offshore PhuKhanh Basin, Vietnam on May 24, 2006. Ministry of Planning & Investment (MPI), Vietnam issued investment licence for the block on June 16, 2006, being effective date of the PSC. The company has not found any hydrocarbon in the block but is continuing to stay invested.
OVl first took a two-year extension of the exploration period till June 2014 and then another one year. A third extension was granted on May 28, 2015 and now a fourth extension has been granted. The company has so far invested USD 50.88 million in the block. The block lies in the part of South China Sea over which China claims sovereignty.